You could ask a family member to go on the loan with you as a non occupant co-borrower (allowed on an FHA loan). You could ask a family member to gift you enough cash to drop your payment enough to qualify.
You could simply buy what you could qualify for now (although I doubt there are houses that cheap, but maybe I am wrong)
The reason lenders will not allow you to rent out the departing house is because too many people want to "dump" their underwater house, after they buy something else. Lenders see this as a way to stop foreclosures.
Did a lender tell you she cannot be on the loan? If so, talk to other leanders, and make sure they are direct lenders and not a mortgage broker.
If your fiance rents her condo first, that may change the picture. This is NOT a question for agents, but rather for your lender. If you need referrals for a lender, ask your agent or your family, friends and colleagues.
Best to you,
Mark and Kari Shea
San Diego Real Estate Experts
Foreclosure, Short Sale & Investment Specialists,
Development Opportunities & Traditional Real Estate
3914 Murphy Canyon Road, A218
San Diego, CA
Go to http http://:www.QuestStarRealty.com and click on property alerts. We can get you started with a real-time search to see what is available for you in the 200k range.
In addition, call Mary Anne at 858.688.9026 and she can get you a loan approval.
Happy house hunting!